The Benefits of Visibility Improvement: New Evidence from the Los Angeles Metropolitan Area

The Benefits of Visibility Improvement: New Evidence from the Los Angeles Metropolitan Area
Beron, Kurt; Murdoch, James; Thayer, Mark
2004-10-03 00:00:00
This article examines the impact of a specific aspect of air quality—visibility, or the ability to clearly see distant objects—on housing values. Our analysis is based on a data set constructed by matching residential housing sales data from the Los Angeles Metropolitan Area for the period 1980 through 1995 with visibility and other air pollution data and other characteristics. We find that visibility differences are capitalized into housing values, producing a measurable hedonic price gradient. The time-series design facilitates an estimate of the demand for visibility that we use to calculate the benefits of changes in visual range.
http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.pngThe Journal of Real Estate Finance and EconomicsSpringer Journalshttp://www.deepdyve.com/lp/springer-journals/the-benefits-of-visibility-improvement-new-evidence-from-the-los-lYbI77XG0O

The Benefits of Visibility Improvement: New Evidence from the Los Angeles Metropolitan Area

Abstract

This article examines the impact of a specific aspect of air quality—visibility, or the ability to clearly see distant objects—on housing values. Our analysis is based on a data set constructed by matching residential housing sales data from the Los Angeles Metropolitan Area for the period 1980 through 1995 with visibility and other air pollution data and other characteristics. We find that visibility differences are capitalized into housing values, producing a measurable hedonic price gradient. The time-series design facilitates an estimate of the demand for visibility that we use to calculate the benefits of changes in visual range.